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Finance

Hong Kong’s finance chief warns of market volatility, pledges support for families

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Hong Kong’s capital market is likely to experience significant fluctuations this year owing to intensifying geopolitical risks, the city’s finance chief has warned, stressing the need for caution in financial management.

Six weeks before the government unveils its annual budget, Financial Secretary Paul Chan Mo-po pledged to consider whether there is scope to adjust child allowance to encourage more births, after a Post report revealed that Hong Kong’s registered births hit a record low last year.

During a briefing for lawmakers on Friday, Chan reported that the economic growth for last year is forecast at 3.2 per cent despite geopolitical pressures. While export performance remained strong, consumer spending had weakened, he said.

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For the coming year, Chan expressed “cautious optimism” about the economic outlook, citing risks that could affect financial security but also highlighted the improving economy in mainland China.

“Caution is needed because we anticipate that geopolitical risks will only intensify. Under such circumstances, the capital market is inevitably subject to significant fluctuations,” he said at a special meeting of the Legislative Council’s finance committee. “Geopolitical factors influence capital flows. We must exercise caution.

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“While we must vigorously pursue development, we also need to coordinate efforts on security, particularly in financial safety, to prevent unexpected disruptions and ensure financial stability.”